Campaigners and charities are calling on ministers to raise the basic rate of statutory sick pay (SSP) from its current £3 per hour—one of the lowest rates in the developed world—amid warnings that the system leaves millions unable to cover essential bills.
A Citizens Advice report revealed that 78% of low-income workers, equating to 1.6 million people, would be unable to meet basic expenses if they relied on SSP for just four weeks.
The government’s proposed reforms, part of the Employment Rights Bill being debated in Parliament this week, fail to address the critical issue of inadequate payment levels, the charity said.
Tom MacInnes, policy director at Citizens Advice, stated:
“The proposed reforms are welcome but fall short. The amount of SSP must be increased to align more closely with the national living wage. Without this, workers will continue to face hardship or feel compelled to work through illness, jeopardising their recovery.”
The UK currently offers one of the “stingiest” SSP rates among developed nations, at £118.75 a week for full-time workers—a mere 10% of the average wage replacement offered in other advanced economies.
Someone working full-time on the national minimum wage would lose 70% of their income if forced to rely on SSP, even after proposed changes.
Proposed Reforms Offer Limited Relief
The Employment Rights Bill, described by ministers as a transformative boost to workplace pay and productivity, will address two long-standing issues:
Low-paid workers will now be eligible for SSP.
SSP will be payable from the first day of illness rather than the fourth.
However, critics argue these changes fail to address the fundamental inadequacy of the payment rate.
Citizens Advice reported that SSP was its most common employment-related concern, assisting nearly 50 individuals daily in 2023-24. Over 10% of workers who sought help relied on food banks, while one in five required other forms of charity support.
Real-Life Impact of Inadequate SSP
Alan Barton, a 65-year-old engineer undergoing cancer treatment, said his financial stability was devastated by SSP, which did not cover a third of his £1,200 monthly rent:
“After paying taxes for 40 years, SSP nearly caused me financial ruin. It’s not enough to live on. Ministers need to listen to those affected and raise SSP to align with the minimum wage.”
Calls for Substantial Increases
Citizens Advice and other organisations are urging the government to increase SSP to reflect a percentage of the national living wage, set to rise to £12.21 per hour in April, or to match the statutory maternity pay level. Increasing SSP by £67 weekly would still only cover less than half the earnings of a minimum-wage worker.
The Resolution Foundation echoed these concerns, with principal economist Nye Cominetti stating:
“Too many workers in Britain literally cannot afford to fall ill, with SSP leaving the average worker reliant on just 10% of their pay.”
Government Response
A Department for Work and Pensions spokesperson defended the reforms, stating:
“No one should have to choose between their health and financial hardship. Our Employment Rights Bill reforms aim to strengthen statutory sick pay and improve living standards across the country.”
Despite these assurances, campaigners insist that without a significant SSP rate increase, the system will continue to push millions of workers into financial distress.
